Insurance Act Video

We are delighted to present an animated video explaining the Insurance Act and what it means for our customers.

It is arguably the single most important statutory change to commercial insurance in over 100 years.

The Insurance Act 2015 applies to all commercial insurance that is subject to UK law and affects you and your business. The legislation aims to put you in a better position than under the existing law as it helps you clarify what information you need to disclose when taking out and renewing business insurance, along with remedies for non-disclosure, misrepresentation and breach of warranty will also be fairer.

What are your duties?

You have a duty of fair presentation of your business risks to an insurer. You will also be obliged to carry out a reasonable search within your business to identify material information that should be disclosed to your insurers.

What does this mean for you and your business?

A fair presentation is one that discloses, in a manner that is reasonable, clear and accessible, every material circumstance which is known or ought to be known by the business's senior management, anyone else insured under the policy and those responsible for arranging the insurance following a reasonable search.

Material information is anything which could influence the judgement and decision of an insurer. Here are some examples of material facts:

  • Any amendment to your business activities
  • Changes to processes or practices in the storage of hazardous goods
  • All motoring convictions, particularly any involving drink driving, dangerous driving and driving without insurance or offences that have resulted in licence suspension
  • All criminal offences, prosecutions, bankruptcy or insolvency of partners or directors.

The most important action you can take is seek advice. If unsure whether something should be disclosed or not then it is safer to make the disclosure. As your broker we will work with you to ensure that a fair presentation is made.

The Act has changed the law on warranties ensuring they will now be dealt with in a fairer way also making it harder for insurers to create them.

Insurers will no longer be able to rely on a breach of warranty to potentially void the entire policy, where the breach is irrelevant to the loss occurred. A position that will seem much fairer to the majority of policyholders. Not to be overlooked, a breach can still have severe consequences in respect of claims you make under the policy.